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LVR increase - pay LMI again?

Discussion in 'Property Finance' started by Martinez22, 24th May, 2016.

  1. Martinez22

    Martinez22 Well-Known Member

    Joined:
    21st Jun, 2015
    Posts:
    121
    Location:
    Perth
    Hi, just a quick question.

    If you initially paid LMI with Bankwest and a few years down the track you decide to refinance to release some equity with the same bank, do you have to pay LMI again?
     
  2. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,107
    Location:
    Melbourne, Nationwide
    Usually you'd only pay LMI on the increase as long as the only real change is an increase. You wouldn't need to pay LMI on the full amount. This means the LMI would be hundreds or perhaps one or two thousand, rather than $5k+ (very much depends on the loan amount and LVR).

    If you add or remove borrowers, a new loan would be needed and a new LMI policy would be applied and it might be around 2% of the loan amount.
     
  3. nothingman

    nothingman Active Member

    Joined:
    24th Feb, 2016
    Posts:
    32
    Location:
    Sydney
    you pay full amount, but BW will give you 'credits' for your original LMI amount